News

Legislative Update

Author: Government Relations

Posted: April 4, 2009

Welcome to the PSU Legislative Update. While this information has been sent via email, this update marks a return to the PSU website for the first time in nearly two months. During the transition to a new website "backend" Government Relations was unable to post information here. Bear with us in case there are any glitches.

Congress Moves Forward With BudgetBoth the US House and Senate passed a $3.5 trillion budget and will conference their versions in the coming weeks. The Budget included major changes to our nation's health care and education policies, which mirror President Obama's proposed budget. The bill also allows the expiration of the Bush-era tax cuts. This budget will act as a road map for the appropriations process for Fiscal Year 2010.

Legislature Releases Cut Scenario This afternoon the legislature released a 30% budget cut scenario for almost all state agencies, excluding the Oregon University System. The Legislature asked all agencies to provide this information though it is our hope and belief that cuts will not ultimately be made this deep. While cuts from higher education were excluded from the release today, those cuts are expected to be released early next week, pending review from the State Board of Higher Education today.

Once the May 15 revenue forecast is released, the legislature will likely have a better understanding of the level of cuts that the OUS will have to take; but this is not a certainty. Any revenue generating proposals will also have an impact on the level of cuts. We don't know what all of those proposals are at this time; there has been some talk of gas or cigarette taxes, corporate minimum increase, and provider taxes; but this is still an unknown.

To see the full list of cuts, please visit the Legislative Fiscal Office Website. Higher education’s cuts will be on the website Monday, though all other information is available now.

Update on the above:

During yesterday’s Oregon University System board meeting in Monmouth,
Chancellor George Pernsteiner brought the 30% budget cut scenario for
OUS to the board. Pernsteiner noted that given the federal stimulus
dollars that will come to the state, that a 30% cut is unlikely, but a
significant cut at a lower level is likely. At the 30% cut scenario
level, which would be about $285 million, the Chancellor asked the
Board to approve the following cut options:

Provide to LFO a reaffirmation of the policy decision that
tuition increases for resident undergraduates that are higher than 3.6%
per year will include a 30% set aside for need-based financial aid;

Priority will be given to programs related to instruction, support of students and research;

Campus public services will be reduced by more than 30%;

Funding for the OSU-Cascades campus will be reduced by more than 30%;

To
help insure financial sustainability of OUS’ smaller campuses, that
their support be reduced by less than 30%, and that services and
academic programs be limited to those needed in that region; and that
salary costs shall be reduced by 4.6% for 2009- 11.

The Board approved these elements as those to be provided to the
LFO as part of the 30% cut scenario.

Dental ClinicsThis week SB 117 passed the Senate Committee on Health Care and Veterans’ Affairs. Oregon’s Dental Practices Act requires that a dental practice be owned by a dentist (with a few exceptions). SB 117 would provide an exemption for the Oregon University System to allow Portland State University to continue operating its existing clinic, which currently serves over 300 low students per year.

Higher Education Caucus Convenes The newly formed, bi-partisan, bi-cameral Higher Education Caucus has scheduled its first meeting for Thursday, April 9th. Co-Chaired by Senator Vicki Walker, Senator Frank Morse, Representative Larry Galizio, and Representative Greg Smith, the Caucus is expected to improve the legislature’s understanding of the issues facing Oregon’s public universities and the 80,000 students who attend them.

Upcoming Town Hall MeetingsWe periodically include Town Hall meeting notices in this newsletter. To sign up directly for newsletters from your legislator, please visit the sign up page on the legislative website.